On Monday, the stock futures market saw a slight decline as investors awaited upcoming U.S. inflation data later in the week and prepared for the commencement of the first-quarter earnings season. Among the stocks expected to exhibit significant movement during the trading session were Tesla, Boeing, United Airlines, MicroStrategy, Coinbase Global, and Kimberly-Clark.
Tesla experienced a notable surge of 3.6% in premarket trading following an announcement by CEO Elon Musk. Musk revealed that Tesla would unveil its highly anticipated “robotaxi” on August 8. This positive news came after a Reuters report suggested that Tesla was abandoning plans to develop a lower-priced all-electric vehicle, instead focusing on the production of self-driving robotaxis. Musk promptly refuted the report on his social media platform, which likely contributed to the stock’s premarket gains.
Boeing, however, faced a decline of 0.9% due to two significant developments. Firstly, CEO David Calhoun, who is set to step down earlier than expected at the end of the year, received a substantial pay increase of nearly $33 million last year, marking a 45% rise from 2022. This increase in executive compensation coincided with Boeing’s share price dropping from about $330 when Calhoun assumed the role of CEO in 2020 to $183.14 at the close of Friday’s trading session. Additionally, the Federal Aviation Administration (FAA) initiated an investigation into an incident involving an engine cover detachment from a Southwest jet during takeoff on Sunday. The aircraft involved was a Boeing 737-800, adding to Boeing’s challenges following the emergency-door-plug blowout incident involving the 737 MAX 9 aircraft earlier in the year.
United Airlines made headlines by announcing the postponement of its investor day, originally scheduled for May 1. The decision was attributed to ongoing FAA reviews of the airline’s safety protocols following recent safety incidents. United emphasized its commitment to prioritizing safety over financial results amidst regulatory scrutiny. Consequently, United’s stock experienced a decline of 1.3%.
In the cryptocurrency space, MicroStrategy witnessed an 11% increase, while Coinbase Global rose by 5%. This uptrend in crypto-related stocks mirrored Bitcoin’s 3.6% gain over the past 24 hours, with the leading cryptocurrency reaching a price of $71,951.
Kimberly-Clark also made significant business moves by announcing the sale of its personal protective equipment business to Australia’s Ansell for $640 million. This transaction involved the divestiture of a business segment specializing in safety products such as gloves, protective apparel, and safety eyewear under the brand names Kimtech and KleenGuard.
Looking ahead, investors anticipated earnings reports from major U.S. banks, including JPMorgan Chase, Wells Fargo, and Citigroup, signaling the beginning of the earnings season. Additionally, earnings announcements from Delta Air Lines, BlackRock, Constellation Brands, CarMax, State Street, Fastenal, Infosys, WD-40, and Neogen were also anticipated throughout the week, further shaping market sentiment and direction.